Savers can put $500 more toward popular retirement accounts in 2020 thanks to a cost-of-living adjustment.
The Internal Revenue Service announced (Notice 2019-59) the bump in contribution limits Nov. 6.
The limit for typical employer-sponsored, deferred contribution plans—including 401(k) accounts, 403(b) accounts, and 457 plans—will rise from $19,000 to $19,500.
Catch-up contributions to standard 401(k)/403(b)/457 retirement accounts held by workers 50 and older are scheduled to rise from $6,000 per year to $6,500. Catch-up contributions to SIMPLE 401(k)s and SIMPLE individual retirement accounts by workers 50 and up remain capped at $3,000 per year.
Other changes include:
- The contribution limit...